How do you know it’s the right time to buy a new car? Are there signs to recognize the need for an upgrade or replacement? If you’re on the fence about whether to start looking for a new car, there are a few things to consider first before jumping into the process.
Links:
View the Consumer Reports article for more information
Check your car’s value with Kelley Blue Book
Check out TCU University for more financial education tips and resources! ...
How do you know it’s the right time to buy a new car? Are there signs to recognize the need for an upgrade or replacement? If you’re on the fence about whether to start looking for a new car, there are a few things to consider first before jumping into the process.
Links:
- View the Consumer Reports article for more information
- Check your car’s value with Kelley Blue Book
- Check out TCU University for more financial education tips and resources!
- Follow us on Facebook, Instagram and Twitter!
- Learn more about Triangle Credit Union
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal podcast.
To buy or not to buy. That is the question.
Most of us have a car. We use our cars every day. For many people, it seems they’re getting a new car every other year. But for others, determining the right time to replace an existing car can be challenging. Have you been mulling over it for a while or rather lured into it by that recent commercial for a brand-new luxury model?
If we want to make the right decision when it comes to buying a new car, it’s important to make sure we’re making it from a reasonable perspective rather than an emotional perspective.
How do you know it’s time? What are some of the signs you’re ready for a trade in? According to an article by Consumer Reports, there are a few reasons why someone might start their search for a new car. These are: you want to save money, you’re concerned about safety, or you want more features in general.
We’ll start with the first one, Saving money:
Cars always cost something to run. You’ll pay for fuel, maintenance, repairs and insurance – the list can keep going. Is your car getting too expensive for you? Are you dishing out hundreds or thousands of dollars for repairs every year? This might be the time to consider trading it in.
But is paying the price of a new car worth trading in the existing one? The sticker price of a car is in the tens of thousands where repairs could be in the hundreds, maybe thousands. Do the math, compare your car’s value by checking Kelley Blue book .com and compare that with the amount of money you’ve been spending in repairs.
If the value of the car is less than the amount of money it’ll cost to repair, then it’s most likely time for a trade in. If the car is only in need of low-level repairs or maintenance that doesn’t cost too much or you could even do yourself, then it may be wise to keep it around for a few more years.
The second one to address is if there are concerns about safety.
If the car can’t get you reliably from point A to point B then it’s time to start looking for a new one. But even if an older model is still reliable, it’s also important to review the quality of the safety features of that car.
Newer models have upgraded safety features like blind spot alerts, backup cameras, refined airbag technology, frame design, and braking systems with improved capabilities to keep passengers safe. Older models lacking those designs might not be as trustworthy in accidents or situations.
Consider the safety of your existing vehicle to determine whether it’s still meeting all the safety needs of your family. If safety is important to you, then upgrading to a newer car may give you better peace of mind because you’ll know your car is equipped to protect everyone traveling in it.
The third reason you may consider a new car is just for more features in general:
Older vehicles provided many things that seemed cutting edge back in the day but have now pretty much gone obsolete. Today, there may still be an occasional car with crank windows, a cassette player and even an ash tray.
But many of today’s drivers have no need for those features and are now interested in other things like new GPS capabilities, voice commands, built-in navigation, and other automatic features. As new models roll out, manufacturers are adding newer and more sophisticated technology to improve the driving experience.
If you like the idea of heated seats because you’re driving to work at 3:30 am on a snowy morning, a newer vehicle will have just what you need. Some people are okay driving with older features and foregoing the new tech for a bit to save some money, but if after a while you find you’re in need of some more improved tech, then it may be time to trade in.
To wrap up, determining why you want a new car in the first place helps provide better insight into whether it’s the right time to start the process or to wait for a little bit.
If you have made the decision to find a new car, or a new to you car, we’ve got you covered. Check out our competitive rates and get preapproved at trianglecu.org to head confidently to the dealer when you’re ready to buy.
If there are any other tips or topics you would like us to cover, let us know at tcupodcast@trianglecu.org. Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.
Have a great day!
